On or about August 5, 2015, Close Construction, LLC ("Close") entered into a Construction Agreement with Riviera Beach Utility Special District (RBSUD) for rehabilitation and replacement of lift stations 10 and 50 (the "Project"); and Hartford Fire Insurance Company ("Hartford"), as surety, and Close, as contractor, issued a public construction bond (no. 21BCSHH1366) to RBUSD, as obligee, conditioned upon the full and faithful performance of the contract (the "Bond");
RBUSD terminated Close's contract on the Project and called upon Hartford to reimburse RBUSD for all of its losses and expenses related to the termination of Close's contract and completion of Close's work; and Hartford solicited from and negotiated a price with Wharton Smith ("Wharton") to complete Close's work; and RBUSD then entered into a contract with Wharton to complete Close's contract; and Wharton has completed its work and has been paid in full by RBUSD; and RBUSD has made a demand to Hartford to reimburse it for losses and expenses incurred by RBUSD in excess of the contract balance that remained in Close's contract.
RBUSD and Hartford wish to avoid a lawsuit concerning Hartford's obligations to RBUSD under its public construction bond in the circumstances of this dispute.